DFA Loan Guarantee for Embassy Property Purchase

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EXECUTIVE ORDER NO. 353: DFA Loan Guarantee for Embassy Property Purchase

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Title Source: Supreme Court: DFA Loan Guarantee for Embassy Property Purchase

Law: Executive Order No. 353

Decision Date: Jun 28, 1996

Fidel V. Ramos mandates the Department of Foreign Affairs to secure a $9.59 million loan from the Philippine National Bank for acquiring properties in Madrid, Rome, and Los Angeles, ensuring budget allocations for loan amortization from 1997 to 2001 to enhance the Philippine foreign service's facilities ahead of the 1998 Centennial celebrations.

Law Summary

Identification and Assessment of Properties

The Department of Foreign Affairs (DFA) identified three properties for acquisition located in Madrid, Rome, and Los Angeles.
These properties were assessed as suitable and adequate for foreign service use.
Criteria include prominent location, decent areas, and accessibility via public transport.

Loan Agreement with Philippine National Bank (PNB)

DFA and PNB agreed on a loan amounting to US$9,589,000.
The loan serves as bridge financing specifically to purchase the identified properties.
Repayment term of the loan is set for five years.

Payment and Budget Appropriations

The 1996 DFA budget appropriations for chancery rentals for the three posts will initially cover the interest on the loan.
Annual budget appropriations for the purchase of properties for the years 1997 to 2001 will be allocated to amortize and pay off the loan.

Executive Order Mandate and Guarantee

The President of the Philippines obligates and guarantees the DFA loan with the PNB.
The Secretary of Budget and Management is ordered to include necessary funds in the DFA annual budget appropriations for 1997-2001 to cover amortization and full payment.
This ensures government backing and timely servicing of the loan commitments.

END